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$ACM has been awarded a nine-year contract by the US Army to provide rotary wing flight training instructor support services at Alabama. The $442MM, cost-plus-fixed-fee contract includes a 12-month base period plus option years, and is expected to be completed by Sept. 30, 2026.
For FY18, $ACM expects its adjusted EPS to be in the range of $2.50 - 2.90 and free cash flow to be approx. $600-800MM. Additionally, the company has reduced its total debt by $1.4Bil, since the closing of the URS acquisition in Oct 2014.
Engineering firm $ACM reported a jump in its 4Q17 earnings, on a 12% growth in revenue. Net income grew to $88.4MM, or $0.55 per share, compared to $7.2MM, or $0.05 per share during 4Q16. Adj. EPS was $0.74. Revenue rose to $4.85Bil from $4.32Bil during 4Q16.
$ACM announced a formalized capital allocation policy that provides specificity on intended future uses of capital, including the authorization by its BoD of a new $1Bil stock repurchase program. The company intends to return substantially all free cash flow to investors through the new repurchase authorization.
$ACM launched an offer to exchange new registered notes for the outstanding unregistered notes that it issued in February 2017 in a private placement. $ACM is offering to exchange $1Bil of its newly issued 5.125% senior notes due 2027 for a like principal amount of its outstanding 5.125% senior notes due 2027.
$ACM reiterated FY17 adjusted EPS guidance of $2.80 to $3.20, which includes approx $0.20 of anticipated gains related to AECOM capital realizations at the mid-point of the range. It sees $36MM of acquisition and integration expenses during the period, and capex is predicted to be approx $115MM.
$ACM's wins during 2Q17 were $3.4Bil, an increase of 10% YoY. Total backlog increased 4% YoY to $42.4Bil. The company’s backlog is expected to reflect the $3.6Bil Management Services award upon resolution of a protest by the incumbent contractor.
$ACM said AECOM Capital has entered into a definitive agreement to sell its equity interest in its first investment. The transaction is expected to close in 3Q17, subject to closing and other financial conditions, and will contribute approx. $0.17 to EPS in that quarter.
$ACM and EnergySolutions, a nuclear waste management & decommissioning services firm, JV wins decommissioning general contract for San Onofre Nuclear Generating Station, SONGS Decommissioning Solutions, by Southern California Edison. The value of the contract will be included in $ACM's backlog for 1Q17.
$ACM's total wins in the quarter was $6.3Bil, resulting in a book-to-burn ratio of 1.4. The wins were helped by broad success in the Americas Design market and the selection to build the NFL Rams stadium in Los Angeles. Total backlog increased 4% to $42.8Bil.